Betriebliche Bestimmungsfaktoren zur Nutzung staatlicher Hilfen in Ostdeutschland

The governmernt allocates enormous financial support to East German businesses through business development and business-oriented labour-market policies. Until now, no study has examined which factors are decisive in determining businesses take up these subsidies. The following report has reviewed this issue by means of a multivariate procedure (probit procedure) based on IAB business panel data. Findings indicate that larger and growing businesses with qualified employees and, to some extent, a good technical position (investment support) draw on such aid. Businesses in economically difficult or crises situations, meanwhile, access these two types of support to a lesser extent. Form an employment policy perspective, the fact that investment subsidies are primariliy utilised by businesses not commited to branch-level collective agreements and that labour cost subsidies are predominantly taken up by companies without works councils, must be considered in a critical light. Public funding is thus largely allocated to businesses with no obligations to meet existing minimum standards in working and remuneration conditions..(Original text only available in german language)